By Michael B. Cohen
Vice President of Global Operations
MyChargeBack
Following the storms of crypto winter, there may be resilient green shoots for many businesses connected with digital currency. The fact that bitcoin found a bottom at $17,000, ventured to $22,000 before receding to $20,000 shows that it has signs of life.
In addition, discussions about regulation, which crypto fans avoided in the past, may now be welcomed as a way to attract crypto-shy consumers to blockchain businesses.
The cryptoverse definitely seems like the Wild, Wild West, and that rebellious new frontier became a shootout at the OK Corral during the crypto crash. With governments mulling over regulations for cryptocurrency, the public and private sector may work together to create a kinder, gentler and safer cryptocurrency environment.
Is the End of Shadow Banking the Beginning of a New Era for Cryptocurrency?
The crash of cryptocurrencies, sparked by the tanking of Terra’s stablecoin UST, seemed like a cautionary tale crypto skeptics were banking on all along – that digital currency hype had developed into a bubble that would surely pop and explode hyperactive valuations.
With the crash, some declared the end of shadow banking or financial services – such as trading currency, lending money and making transactions – without centralized oversight and government regulations.
This shadow banking through the blockchain was liberating for crypto fans who sought freedom from the fees, regulations and red tape involved in conventional banking services. However, this shadow banking system also clearly had a dark side. Without rules requiring deposit insurance, or reporting and transparency, consumers and their funds are at risk.
Now, governments are proposing rules that would allow consumers to take advantage of the blockchain and cryptocurrency technology with rules that would protect consumers. For instance, the UK’s National Crime Agency (NCA) has recommended regulating the use of crypto mixers or tumblers to prevent money laundering on exchanges. Rules may require reporting, documentation and transparency, even though, at present, blockchain transactions are done anonymously.
Regulation Can Inspire Confidence in Crypto
Far from harming the public’s interest in crypto, government rules may, in the long term, be positive for crypto businesses. Looking at the stock market, it’s clear that stocks can be harshly punished if consumers have no confidence in an industry or the security of their funds and information.
The Target data breach in 2014 sent shares of the company down 11% immediately as reports of major hacking reached the headlines. Proposals to beef up security and better protect client data raised Target shares 6.8% in one day after they were announced. From the Target example, there is a lesson that crypto-related businesses can learn about how embracing some degree of regulation and security measures and fostering consumer confidence can be good for business.
One way to keep your funds safe on the blockchain or when doing business with crypto companies and brokers is to know where to turn if you are concerned about suspicious transactions. The MyChargeBack team are skilled at tracking down client transactions on the blockchain and create investigative reports that will help you locate your funds.
MyChargeBack Will Investigate Your Crypto Case
If you have lost money on the blockchain to unregulated brokers, bitcoin wallet hacking or fake merchants, talk to the MyChargeBack team. Our crypto investigations will provide evidence to bolster your claim.
MyChargeBack has developed working relationships with law enforcement agencies worldwide, have extensive knowledge and experience with crypto tracking and can improve your prospects of getting your funds back.
